Final answer:
The correct statement is that the firm's sources of cash exceed its uses of cash based on the changes in the account values.
Step-by-step explanation:
The correct statement concerning a firm's sources and uses of cash can be determined by analyzing the changes in the account values provided.
From the given account values:
- The beginning balance of accounts receivable is $750 and the ending balance is $890, indicating an increase in accounts receivable during the period. This represents a source of cash for the firm.
- The beginning balance of inventory is $3,700 and the ending balance is $2,540, indicating a decrease in inventory during the period. This represents a use of cash for the firm.
- The beginning balance of net fixed assets is $9,800 and the ending balance is $8,850, indicating a decrease in net fixed assets during the period. This represents a use of cash for the firm.
- The beginning balance of accounts payable is $525 and the ending balance is $675, indicating an increase in accounts payable during the period. This represents a source of cash for the firm.
- The beginning balance of long-term debt is $4,700 and the ending balance is $4,300, indicating a decrease in long-term debt during the period. This represents a use of cash for the firm.
- The beginning balance of common stock is $9,025 and the ending balance is $7,305, indicating a decrease in common stock during the period. This represents a use of cash for the firm.
Based on the changes in these account values, the correct statement is that the firm's sources of cash exceed its uses of cash since there is an increase in accounts receivable and accounts payable, which are sources of cash, and a decrease in inventory, net fixed assets, long-term debt, and common stock, which are uses of cash.